Barley prices in Ukraine continue to fall due to lack of export demand, while in France they rose by 5% in a week
Every day, the Russian Federation continues to terrorize Odessa, attacking it with 20-30 drones and several missiles, damaging grain terminals and civilian vessels, and creating a continuous alarm that blocks the work of export terminals. Therefore, starting from Monday, traders practically stopped purchasing and accepting barley at Black Sea ports, as a result of which prices collapsed by 1,000 UAH/t to 8,000-8,100 UAH/t or $157-160/t with delivery to Black Sea ports.
At the same time, some traders have already started purchasing feed barley at UAH 8,100-8,200/t with delivery to Danube ports. Therefore, we expect the resumption of purchases with sufficient wagons and trucks to the Romanian port of Constanta.
Prices at domestic elevators have fallen to the levels of 6,500-7,500 UAH/t EXW, but traders are actively buying barley at domestic elevators, as restrictions on exports from Ukraine and the Russian Federation have led to an increase in prices for European feed wheat and corn on world markets to the levels of 230-240 $/t FOB, which will contribute to an increase in barley prices.
Processors in Ukraine buy feed barley at UAH 6,500-7,500/t with delivery to the plant, and malting plants have not yet declared purchase prices for new harvest malting barley, since they are still provided with sufficient stocks of the old harvest until the end of August.
August corn futures on the Euronext Paris exchange rose another 5.7% to €259/t or $296/t in the week, while, according to Agritel, physical prices for French feed barley rose 7.8% to €221/t or $252/t FOB Rouen, and for spring malting barley - by 5% to €248/t FOB Cray.
Rising prices for European barley support demand for cheap Ukrainian barley, but the increase in freight costs from Danube ports to Constanta and the cost of ship insurance will not yet allow traders to raise prices in Ukraine, although it will contribute to increased purchases at grain elevators for storage and further export through Constanta.
